Railroad involved in Quebec train disaster files for bankruptcy

Maine, Montreal & Atlantic Railway has filed for Chapter 11 bankruptcy, according to the federal bankruptcy court in Bangor.

The filing comes one month after one of the company's trains derailed and exploded in Lac-Megantic, Quebec.

The explosion killed 47 people and destroyed part of the downtown area.

On Tuesday MMA announced it would stop hauling crude oil on its rail lines.

Last month, the company laid off 60 employees according to state labor officials.

Company Chairman Ed Burkhardt said previously that a bankruptcy filing was likely because of service disruptions because its rail line remains closed in Lac-Megantic, Quebec.

The Hermon-based company also faces lawsuits and enormous cleanup costs after the July 6 derailment and disaster in Lac-Megantic.

Gov. Paul LePage issued a statement about the bankruptcy.

LePage said, "Maine DOT will vigilantly and actively participate in the bankruptcy and in any related proceedings before the Surface Transportation Board to protect the public interests of the State of Maine and its citizens and the rights of shippers to receive service. It is critical that shippers have accessibility to the rail lines, which provide great economic benefit to our state."